Philippines Launches Three-Month P60 Daily Wage Subsidy for Small Business Owners as NCR Minimum Pay Rises

By Kekeletso Nkele, small.news Assistant

(small.news) — The Philippine government has launched a temporary wage subsidy program for small and medium-sized enterprises struggling to meet the cost of a mandated minimum wage increase in the National Capital Region, Palace Press Officer Clarissa A. Castro announced on September 28, reports Traders Union News.

Under the Sagip Trabaho Program, administered by the Department of Labor and Employment, qualifying SMEs will receive a P60 daily government subsidy per covered worker for October, November, and December 2026 — the same amount as the wage increase itself under Wage Order No. 28.

New Minimum Wage Rates and Affected Workers

Wage Order No. 28 took effect on September 27, raising daily minimum wages in the NCR by P60. Non-agricultural workers are now entitled to P755 per day, while agricultural workers and employees of small retail establishments receive a minimum of P718. The order covers an estimated 1.1 million minimum wage earners in the NCR.

Labor Secretary Francis N. Tolentino said the Sagip Trabaho subsidy is designed to bridge the financial gap for smaller employers during the adjustment period without disrupting payrolls or triggering layoffs. He added that SMEs have a 75-day window to seek formal exemptions from the wage order if they can demonstrate financial hardship.

How Small Business Owners Can Apply

To qualify for the subsidy, business owners must submit a Department of Trade and Industry certificate, financial records, and an employee roster, accompanied by a workers’ performance plan and a business continuity plan. Applications can be lodged online or in person at DOLE regional offices, including the NCR office in Ermita, Manila. DOLE said it would release the full program guidelines during the week of September 28.

Central Visayas Also Covered

Tolentino said the Sagip Trabaho subsidy will also apply to employers in Central Visayas if businesses there require assistance. The National Wages and Productivity Commission has separately approved a P42 daily wage increase for the region, effective October 14, bringing daily minimum wages to P582 in Class A areas and P542 in Class B jurisdictions.

Year-End Trading Season Is a Key Factor

Officials said the relief measures are designed to keep smaller businesses operating through the fourth quarter, which includes the Philippines’ most commercially active months. Authorities said the aim is to ensure workers retain their jobs and that SMEs remain open and viable during the wage adjustment period.